Latam, formed by the takeover of Brazil’s TAM SA by Chile’s
Lan Airlines SA, rose 5.2 percent to 6,407.8 pesos at the close
in Santiago, the biggest jump in 14 months. The stock was the
best performer today on the IPSA benchmark index, which fell 0.8
percent.

“Latam’s valuation multiples are showing an attractive
point of entry if you are an investor with a mid to long-term
horizon,” Oswaldo Pacheco, an analyst at Banco de Credito e
Inversiones, said in a telephone interview today from Santiago.

The airline’s shares have fallen 43 percent in 2013 as it
works to reach saving targets from its takeover of Brazil’s TAM
SA and after receiving approval in June to sell $1 billion in
new shares to fund expansions and reduce debt.

Latam’s price-to-book ratio reached 1.04 times on Aug. 13,
the lowest since April 2003, compared to 3.5 times for Panama’s
Copa Holdings SA and 2.4 times for Bogota-based Avianca Holdings
SA, its two closest regional peers, according to data compiled
by Bloomberg. Avianca has fallen 8.8 percent in 2013 while Copa
has increased 37 percent.

Copa surpassed Latam on Aug. 5 as the largest carrier by
market value headquartered in Latin America. Copa’s total market
cap is $6.05 billion, while Latam is at $6.04 billion.

Latam is scheduled to report second-quarter results Aug.
20. Analysts forecast a loss of $95.7 million, according to the
average of six estimates.